Hengrui Pharma and GSK enter agreements to develop up to 12 innovative medicines across Respiratory, Immunology & Inflammation and Oncology

Rhea-AI Summary

GSK (NYSE:GSK) has entered into strategic agreements with Hengrui Pharma to develop up to 12 innovative medicines in Respiratory, Immunology & Inflammation, and Oncology. GSK will pay $500 million in upfront fees and potential milestone payments of up to $12 billion.

The deal includes an exclusive worldwide license (excluding Greater China region) for HRS-9821, a potential best-in-class PDE3/4 inhibitor for COPD treatment. Additionally, Hengrui will develop 11 other programs through Phase I, with GSK holding exclusive options for worldwide commercialization rights.

HRS-9821 has shown promising results in early clinical studies, demonstrating potent bronchodilation and anti-inflammatory effects, with the potential for convenient dry-powder inhaler formulation.

Positive

• Strategic acquisition of potential best-in-class COPD treatment (HRS-9821)
• Rights to develop up to 11 additional innovative medicines
• Expands GSK's growth opportunities beyond 2031
• Leverages Hengrui's early discovery capabilities with GSK's global development expertise

Negative

• Significant upfront cost of $500 million
• Substantial future milestone payments up to $12 billion
• Excludes rights in Greater China region
• Deal subject to regulatory clearances including Hart-Scott-Rodino Act

Insights

Pharmaceutical Industry Analyst

GSK's strategic $500M deal with Hengrui expands pipeline through 2031+ with promising respiratory and oncology assets.

GSK's comprehensive partnership with Hengrui Pharma represents a significant pipeline-building strategy with immediate and long-term implications. The centerpiece is HRS-9821, a potential best-in-class PDE3/4 inhibitor for COPD that addresses an important therapeutic gap in GSK's respiratory portfolio by targeting patients with persistent dyspnea regardless of background therapy. The drug's dual mechanism provides both bronchodilation and anti-inflammatory effects, while its dry-powder inhaler formulation aligns perfectly with GSK's established delivery systems.

The deal's structure is particularly shrewd – $500 million upfront secures 12 potential assets while deferring significant capital deployment until after phase I results demonstrate viability. This de-risked approach with option-based economics for 11 additional programs allows GSK to selectively advance only the most promising candidates while leveraging Hengrui's efficient early-stage development capabilities.

The $12 billion in potential milestone payments signals ambitious expectations but is appropriately structured as success-based compensation. For GSK, this collaboration strategically addresses the critical 2031+ growth window when current blockbusters face patent expirations. Meanwhile, Hengrui gains valuable development expertise and global commercialization capabilities outside their home markets while retaining rights in China and surrounding regions.

This agreement exemplifies the evolving pharmaceutical partnership model that combines Western market access with Chinese innovation capacity, creating a capital-efficient pathway to expand therapeutic pipelines with reduced upfront risk. The focus on validated targets increases probability of success while still pursuing potential best-in-class profiles.

• Includes license for potential best-in-class PDE3/4 inhibitor (HRS-9821) in clinical development for treatment of COPD
• Additional 11 programmes to be developed by Hengrui Pharma and optioned by GSK following phase I completion

JIANGSU, China, July 27, 2025 /PRNewswire/ -- Hengrui Pharma (600276.SH; 01276.HK) today announced it has entered into agreements with GSK plc (LSE/NYSE: GSK) to develop up to 12 innovative medicines, adding significant value to the globalization strategy of Hengrui and significant new growth opportunities to GSK beyond 2031. The programmes were selected to complement GSK's extensive Respiratory, Immunology & Inflammation (RI&I) and Oncology pipeline, and assessed for their potential best- or first-in-class profiles. GSK will pay $500 million in upfront fees across the agreements.

The agreements include an exclusive worldwide license (excluding mainland China, Hong Kong SAR, Macau SAR and Taiwan region) for a potential best-in-class, PDE3/4 inhibitor (HRS-9821) in clinical development for the treatment of chronic obstructive pulmonary disease (COPD) as an add-on maintenance treatment, irrespective of background therapy. The addition of HRS-9821 supports GSK's ambition to treat patients across the widest spectrum of COPD by including those who face continued dyspnoea (shortness of breath) or who are unlikely to receive inhaled corticosteroids or biologics, based on their disease profile.

HRS-9821 has demonstrated potent PDE3 and PDE4 inhibition, leading to increased bronchodilation and anti-inflammatory effects in early clinical and preclinical studies. In addition, HRS-9821 provides the opportunity for a convenient dry-powder inhaler (DPI) formulation that strategically fits GSK's established inhaled portfolio.

The agreements also include a pioneering scaled collaboration to generate up to 11 programmes in addition to HRS-9821, each with its own financial structure. Hengrui Pharma will lead the development of these programmes up to completion of phase I trials, including patients outside of China. GSK will have the exclusive option to further develop and commercialise each programme worldwide (excluding mainland China, Hong Kong SAR, Macau SAR and Taiwan region), at the end of phase I or earlier at GSK's election as well as certain programme substitution rights.

Frank Jiang, Executive Vice President and Chief Strategy Officer of Hengrui Pharma, said: "This strategic collaboration with GSK marks yet another significant milestone in Hengrui's globalisation journey and our mission to innovate and deliver higher-quality, cutting-edge therapies for patients worldwide. GSK brings additional R&D expertise, a robust global clinical network, and broad regulatory capabilities that will accelerate our PDE3/4 inhibitor as well as an array of other innovative therapy programs to overseas markets, potentially delivering breakthrough treatments to patients globally."

Tony Wood, Chief Scientific Officer, GSK said: "We're delighted to announce these exciting agreements with Hengrui Pharma which complement our already-extensive pipeline. This deal reflects our strategic investment in programmes that address validated targets, increasing the likelihood of success, and with the option to advance those assets with the greatest potential for patient impact."

The collaboration enables scale and speed to proof-of-concept to develop up to 11 additional innovative medicines. It benefits from GSK's therapy area expertise, deep understanding of disease biology, clinical development capability and global commercial scale with Hengrui Pharma's early discovery engine, platform technologies, extensive pre-clinical pipeline of high-value programmes and speed of clinical evaluation.

Financial considerations
GSK will pay $500 million in upfront fees across the agreements including for the license of the PDE3/4 programme. The potential total value of future success-based development, regulatory and commercial milestone payments to Hengrui Pharma is approximately $12 billion if all programmes are optioned and all milestones are achieved. In addition, Hengrui Pharma will be eligible to receive tiered royalties on global product net sales (excluding mainland China, Hong Kong SAR, Macau SAR and Taiwan region).

The license to HRS-9821 is subject to customary conditions, including applicable regulatory agency clearances under the Hart-Scott-Rodino Act in the US.

About GSK
GSK is a global biopharma company with a purpose to unite science, technology, and talent to get ahead of disease together. Find out more at gsk.com.

About Hengrui Pharma
Hengrui Pharma is an innovative, global pharmaceutical company dedicated to the research, development and commercialisation of high-quality medicines to address unmet clinical needs. With a global R&D team that includes 14 R&D centres and more than 5,500 professionals, Hengrui Pharma's therapeutic areas of focus include oncology, metabolic and cardiovascular diseases, immunological and respiratory diseases, and neuroscience. To date, Hengrui has commercialised 23 new molecular entity drugs and 4 other innovative drugs in China. Founded in 1970 with the core principle of putting patients first, Hengrui Pharma remains committed to advancing human health by striving to conquer diseases, improve health, and extend lives through the power of science and technology.

Media on behalf of Hengrui Pharma:
DGA Group
hengrui@dgagroup.com

View original content:https://www.prnewswire.com/news-releases/hengrui-pharma-and-gsk-enter-agreements-to-develop-up-to-12-innovative-medicines-across-respiratory-immunology--inflammation-and-oncology-302514566.html

SOURCE Jiangsu Hengrui Pharmaceuticals Co., Ltd

FAQ

What is the value of the GSK-Hengrui Pharma collaboration deal?

GSK will pay $500 million in upfront fees, with potential future milestone payments of up to $12 billion if all programs are successful, plus tiered royalties on global product sales.

What is HRS-9821 and how will it benefit GSK's portfolio?

HRS-9821 is a potential best-in-class PDE3/4 inhibitor for COPD treatment, offering bronchodilation and anti-inflammatory effects with a convenient dry-powder inhaler formulation that complements GSK's inhaled portfolio.

How many programs are included in the GSK-Hengrui collaboration?

The collaboration includes up to 12 programs: one immediate license for HRS-9821 and 11 additional programs to be developed by Hengrui through Phase I with GSK holding exclusive option rights.

What territories are covered in the GSK-Hengrui partnership?

GSK receives worldwide rights excluding mainland China, Hong Kong SAR, Macau SAR, and Taiwan region for all programs in the collaboration.

When will the GSK-Hengrui deal be completed?

The deal is subject to customary conditions, including regulatory clearances under the Hart-Scott-Rodino Act in the US. The specific completion timeline was not disclosed.